Instructions on detailed procedures for establishing an insurance business company

The insurance business is a potential field, but to establish a successful insurance company, businesses need to understand strict processes and conditions. In the context of Vietnam’s increasingly growing insurance market, understanding business establishment procedures will ensure transparency and promote sustainable growth. Please follow Long Phan’s following article to help you grasp important and complete information about this process.

Conditions for establishing an insurance business company

General conditions

Pursuant to Article 64 and Articles 11 and 35 of Decree 46/2023/ND-CP, general conditions for establishing an insurance company include;

1. Conditions on shareholders and capital contributing members for establishment:

• Organizations and individuals have the right to establish and manage businesses in Vietnam according to the provisions of the Law on Enterprise;
• The organization has legal status and is operating legally; In case of contributing 10% or more of charter capital, the conditions in Articles 64, 65, 66 of this law and Article 11 of Decree 46/2023/ND-CP must be met;
• Insurance enterprises that have been granted a license to establish and operate in Vietnam and contribute capital to establish a new insurance enterprise must have made a profit in the last 3 consecutive fiscal years up to the time of submitting the application for a license and meet the capital safety ratio as prescribed by this Law.

2. Capital conditions:

Charter capital is contributed in Vietnam Dong and not lower than the minimum level as prescribed in Article 35 of Decree 46/2023/ND-CP.

Shareholders and founding members are not allowed to use loan capital or investment trust capital from other organizations or individuals to contribute capital.

3. Personnel conditions:

Have a Chairman of the Board of Directors or Chairman of the Board of Members, Director or General Director, legal representative, Actuarial expert expected to meet the conditions and standards of management capacity and experience and professional expertise.

4. Conditions on form of operation

Must establish a limited liability company or joint stock company.

Specific conditions

Firstly, Conditions of capital contributing members established in the form of a limited liability company

1. Conditions for organizations established under foreign laws:

• Confirmed by a competent foreign authority that the insurance enterprise has not seriously violated the provisions of the law on insurance business of the country where the enterprise has its head office within the last 3 consecutive years up to the time of submitting the application for a license;
• The field expected to request a license to perform in Vietnam is the field that the insurance enterprise is directly implementing or has a subsidiary implementing for at least the last 07 consecutive years;
• Have total assets of not less than 02 billion US dollars in the year immediately preceding the year of submitting the application for an establishment and operation license;
• Commitment to support in finance, technology, corporate governance, risk management, operations and operations for insurance businesses expected to be established in Vietnam; ensure this insurance enterprise implements regulations on financial safety and risk management according to regulations;

2. Conditions for economic organizations established under the provisions of Vietnamese law: have total assets not less than 2,000 billion VND in the year immediately preceding the year of submitting the application for license.

Second, conditions on the structure of shareholders contributing capital to establish in the form of a joint stock company

1. There are at least 02 institutional shareholders and each shareholder meets the following conditions:

• Must contribute 10% or more of the charter capital of the insurance enterprise or reinsurance enterprise;
• Conditions specified in Article 65 of the Law on Insurance Business 2022;

2. An individual shareholder may not contribute more than 10% of the charter capital of an insurance enterprise or reinsurance enterprise.

Components of application dossier for insurance business license

Pursuant to Article 12 and Article 13 of Decree No. 46/2023/ND-CP regulating application dossiers for a License to establish and operate an insurance company. Specifically, you can refer to the types of documents to prepare here: Application for issuance of License to establish and operate an insurance company

Procedure for submitting and processing documents to establish an insurance business company

Pursuant to Article 16 of Decree 46/2023/ND-CP, procedures for submitting documents to establish an insurance business company are carried out as follows:

Step 1: Submit application

• Organizations and individuals applying for an establishment and operation license prepare documents according to regulations; Submit directly to the Ministry of Finance or send by post or via the online public service system if eligible.

Step 2: Receive, process documents and issue License

• Within 30 days from the date of receipt of the license application dossier, if the dossier is not complete and valid, the Ministry of Finance shall notify in writing a request to supplement or amend the dossier.
• The maximum time limit for supplementing and amending the investor’s documents is 06 months from the date of notification. If the investor does not supplement or amend the dossier within the prescribed time limit, the Ministry of Finance will refuse to consider granting the License.
• The total time for organizations and individuals to supplement and amend records is maximum 12 months from the date of the first notification by the Ministry of Finance. Past the above time limit, if organizations or individuals do not complete records and documents, the Ministry of Finance has the right to refuse to consider granting a License.
• Within 60 days from the date of receipt of complete and valid documents, the Ministry of Finance shall issue an establishment and operation license to the insurance enterprise.
• In case of refusal to issue a License, the Ministry of Finance shall issue a document clearly explaining the reason.

Services for establishing a full-service insurance business in Long Phan

Long Phan is proud to be a unit specializing in providing in-depth consulting services in the field of establishing insurance businesses. With a team of experienced experts and a deep understanding of the Vietnamese legal system, we are committed to providing comprehensive and professional solutions to our customers. Specifically, our services include:

• Consulting in detail the conditions for establishing an insurance business and choosing the appropriate business form.
• Support in drafting professional business registration documents and checking the legality and completeness of documents and records.
• Support and detailed guidance on the process of submitting applications for licenses to establish and operate insurance enterprises.
• Representing customers to submit applications and work with state agencies when registering for establishment to ensure documents are resolved quickly and effectively.
• Monitor the processing process and assist customers in solving problems that arise during the procedure.
• Consulting, post-registration support and compliance with legal regulations.

Choosing a professional consulting unit is an important key to minimizing risks and shortening the process of establishing an insurance business in Vietnam. If you are interested in establishing a full-service insurance company, please contact Long Phan via the hotline number 0906735386 to receive in-depth, comprehensive support and help you conquer success in the insurance business easily and effectively.